CEA comment on Insurance Guarantee Schemes

07 December 2004

The Comité Européen des Assurances (CEA) is concerned about the possible introduction of an obligation for Member States to set up such schemes and remains firmly opposed to the elaboration of possible legal provisions.

As a principle, Member States should not be obliged to set up any type of guarantee fund. If a Member State envisaged the establishment of additional compensation mechanisms, the Member State should be free to decide which instruments and schemes it deems appropriate to implement. Any uniform pan-European solution disregarding different national situations would be ill-suited in this context.

With regard to the home Member State principle a company should have the option to ask the host country (supervisory authority or scheme manager) for coverage of its branch. The authority or scheme manager for its part should have the option to accept this request or to reject it.

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